Skyward Specialty Insurance Group, a property and casualty (P&C) specialist insurer, has entered into a definitive agreement to acquire 100% of Lloyd’s specialist, Apollo Group Holdings Limited’s shares for a total consideration of $555 million from Alchemy, management, employees, and other strategic investors.
The transaction is expected to close in the first quarter of 2026, subject to regulatory approvals.
It is expected to deliver double-digit adjusted operating EPS accretion in the first full year post closing while adding over $1.5 billion of managed premium, reinforcing Skyward Specialty’s position in the US specialty markets.
Apollo is a US focused specialty underwriting platform operating at Lloyd’s of London that is low volatility, high growth and employs a capital light business model. The business has grown gross written premium at a compound annual growth rate of approximately 20% since its establishment in 2010.
Additionally, through Syndicate 1969, Apollo underwrites a multi-class specialty insurance portfolio. Syndicate 1971, also known as Apollo ibott, delivers an innovative platform liability product for the digital and sharing economy.
Apollo provided approximately 27% of the capital to the two syndicates in exchange for a pro-rata share of the underwriting income, with the remainder of the capital provided by third parties.
The underwriter also earns managing agency fees and profit commissions for being the managing agent to both its own syndicates, and to innovative third-party syndicates, known as Platform Partners.
The acquisition aligns with Skyward Specialty’s strategy, bringing new specialty niches, a distinctive new economy offering, accelerating innovation, and adding Apollo’s advanced technology capabilities, explained the insurer.
Following the completion of the transaction, Apollo’s Chief Executive Officer (CEO), David Ibeson, who has led the growth and development of the firm since joining in 2012, along with Apollo’s entrepreneurial and management team, will join Skyward Specialty and continue leading the Apollo business.
Andrew Robinson, CEO and Chairman, Skyward Specialty Chairman, commented, “We are delighted to reach an agreement to acquire Apollo. Their underwriting leadership and unique market positioning are exceptionally well-matched to Skyward Specialty’s strengths and vision and fit with our strategy to “Rule Our Niche.”
“Apollo’s Syndicate 1969 will provide access to attractive and hard-to-reach specialty classes including Political Violence, Product Recall, Specialty Disruption and other related specialty classes. Leveraging the unique capabilities of Syndicate 1971, Apollo will further enhance our portfolio with unique and innovative solutions designed for new economy industries. Most importantly, the strategic and cultural alignment between the two organizations is exceptional and sets the stage for future opportunities. I look forward to welcoming the Apollo team to Skyward Specialty and embarking on this next chapter together.”
Ibeson added, “We have been building a relationship with Skyward Specialty for nearly two years, and during that time, we have had a number of opportunities to collaborate. We very quickly understood that we had a common view of the future of the specialty market and a shared understanding of how to position our respective organizations to win.
“Culturally, you could not have better alignment between our firms, and our leadership team is engaged and excited about the possibilities this partnership brings. I look forward to working with our new Skyward Specialty colleagues to realize our shared vision.”
Barclays acted as financial advisor to Skyward Specialty and provided committed financing for the transaction, while RPC was the legal counsel.
Evercore was the lead financial advisor, and Howden Capital Markets & Advisory was the financial advisor for Apollo. Willkie Farr & Gallagher LLP were Apollo’s legal counsel.
Leo Beckham, Head of Howden Capital Markets & Advisory, UK & Europe, commented, “Since its establishment in 2010, Apollo has grown to become a leading player at Lloyd’s and in the global specialty (re)insurance market. We are proud to have advised on this transaction which marks the beginning of the next chapter for both Apollo and Skyward, and represents Howden Capital Markets & Advisory’s second transaction with Apollo in the last five years.”
He continued, “Looking forward, we expect further Lloyd’s market M&A to take place over the next couple of years, as a number of platforms seek to refinance their current equity base, following significant financial investor capital inflows in 2020 and 2021.”
Jarad Madea, CEO, Howden Capital Markets & Advisory, added, “This marks HCMA’s 17th M&A or capital raise transaction in the Lloyd’s market over the last six years, cementing our position as a leading advisor on strategic activity in the Lloyd’s market.”
This transaction also marks Skyward’s entry to the Lloyd’s market and establishes a combined group writing in excess of $3 billion of premium, said Howden.
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